CMS marketing representative compensation rules generally apply to which individuals?

• A. Betty and Denise, but not Alice (the employee) or Carl or Edward (to whom exceptions apply).
• B. Alice and Betty.
• C. Carl and Edward.
• D. All five individuals.

Answer: (C)

Marketing compensation rules focus on people who are paid to market Medicare plans and can influence enrollment. They are designed to prevent kickbacks or incentives that might steer beneficiary choices. Generally, these rules apply to individuals who perform marketing activities for the plan and receive compensation for that work—namely, marketing representatives employed by the plan or by a contracted marketing organization.

In this scenario, Carl and Edward are the ones whose roles involve marketing activities and who are compensated for those activities, so the CMS rules generally apply to them. Betty, Denise, and Alice are not described as performing marketing duties in that capacity (or they may be exempt due to different job functions), so the rules wouldn’t generally apply to them.